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Speed of FDI expansions and the survival of Korean SMEs: the moderating role of ownership structure

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  • Jaeyoung Cho

    (Department of Management, Kyungpook National University)

  • Jangwoo Lee

    (Department of Management, Kyungpook National University)

Abstract

We examine the effects of the speed of FDI expansions (SFEs) on the survival of small and medium-sized enterprises (SMEs) and the moderating role of ownership structure, highlighting how the relationship between SFEs and SME survival varies depending on the owners’ identity and their potentially dissimilar interests. We argue and find in a study of Korean SMEs that the relationship between SFEs and SME survival exhibits an inverted U-shape. Moreover, SME survival peaks at a higher level of SFEs when family ownership is high, while SME survival peaks at a lower level of SFEs when institutional ownership is high.

Suggested Citation

  • Jaeyoung Cho & Jangwoo Lee, 2020. "Speed of FDI expansions and the survival of Korean SMEs: the moderating role of ownership structure," Asian Business & Management, Palgrave Macmillan, vol. 19(2), pages 184-212, April.
    • Handle: RePEc:pal:abaman:v:19:y:2020:i:2:d:10.1057_s41291-018-0045-7
    DOI: 10.1057/s41291-018-0045-7
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